Assignment 2 MBA670 Project Management Assignment Brief

Assignment 2 Mba670 Project Management Assignment Brief Prior To

Analyze the project management scenario of Cruise International's telemedicine system implementation, focusing on determining project duration, crashing potential, associated costs, and cost minimization strategies based on the given activities, durations, crashing options, and costs.

Paper For Above instruction

Introduction

Effective project management is essential for timely and cost-efficient delivery of complex initiatives such as the implementation of telemedicine systems onboard cruise ships. The scenario presented by Cruise International (CII) illustrates the multifaceted considerations involved in planning, scheduling, and controlling project activities, especially when time constraints necessitate crashing activities to meet launch deadlines. This paper examines the critical path method (CPM) to determine the minimum project duration without crashing, explores how crashing reduces timeframes and increases costs, and discusses strategies to minimize overall crashing costs while maintaining project deadlines.

Understanding the Scenario and Activities

The project involves five key activities: developing criteria and systems, writing operating instructions, ordering hardware, installing the system, and staff training. Each activity has a normal duration, with options for crashing (reducing activity duration at additional costs). The activities are sequentially linked, forming a critical path that dictates the shortest possible project duration.

Available crashing options include:

• Criteria development: potential crashing saves 1 week at additional cost of $1,500, or extends to 5 weeks with a cost saving of $3,500.
• Operating instructions: specific crashing options are not provided, assuming normal duration unless otherwise indicated.
• Hardware ordering: shipping via UPS Ground can save 1 week at an additional $2,000; FedEx saves 2 weeks at $4,500.
• Installation, training, and testing durations are implied but specific crashing options are limited; for training, a 1-week reduction is possible at $1,200.

Question 1: Critical Path and Project Duration without Crashing

To determine the shortest duration without crashing, the activities' durations, based on typical project planning, are considered. Let's assume standard durations as per typical project estimates or provided details. For this scenario, assume the activities have initial durations as follows:

• Develop criteria and systems: 4 weeks
• Write instructions: 2 weeks
• Order hardware: 2 weeks (standard shipping)
• Install system: 3 weeks
• Train staff: 2 weeks

These activities are sequential, forming a straightforward critical path: 4 + 2 + 2 + 3 + 2 = 13 weeks. Alternatively, if the detailed durations in the scenario differ, the total would be adjusted accordingly. Since the problem implies no crashing, the absolute shortest project duration is 13 weeks.

Question 2: Shortest Duration with Crashing Critical Activities

Crashing activities can reduce overall project duration by shortening the critical path activities. Key considerations include:

• Criteria development can be shortened by 1 week for $1,500; extending to 5 weeks with cost savings.
• Shipping hardware via FedEx can save 2 weeks at $4,500.
• Staff training can be reduced by 1 week at $1,200.

Assuming the initial critical path duration is 13 weeks, identify which activities are on the critical path and assess where crashing yields the maximum reduction. For example, shipping hardware via FedEx (2 weeks saved) and training staff (1 week) combined can reduce the project duration from 13 to 10 weeks at additional costs:

• Hardware shipping (FedEx): $4,500
• Training staff (overtime): $1,200

Crashing criteria development by 1 week (saving 1 week at $1,500) can also be implemented if it is on the critical path. The total potential crash reduction is thus up to 3 weeks, bringing the project down to approximately 10 weeks if all activities are effectively crashed.

Therefore, the shortest project duration achievable by crashing critical activities is approximately 10 weeks.

Question 3: Cost Analysis of Crashing All Possible Activities

To maximize reduction, all crashable activities on the critical path should be considered:

• Criteria development: save 1 week at $1,500
• Hardware shipping: save 2 weeks at $4,500
• Staff training: save 1 week at $1,200

The combined crashing effort yields a total time reduction of 4 weeks (from 13 to 9 weeks). The total additional cost is:

• $1,500 + $4,500 + $1,200 = $7,200

Assuming no other activities can be crashed further, the overall cost of crashing all feasible activities sums to $7,200, and the project can be completed in about 9 weeks.

Question 4: Minimizing Crashing Costs While Maintaining Project Duration

To minimize additional costs, a strategic approach is essential, focusing on crashing activities that yield the greatest time reduction per dollar spent, known as the crash cost per week. The process involves:

1. Calculating the crash cost per week for each activity:

• Criteria development: $1,500 for 1 week saved → $1,500/week
• Hardware shipping via UPS Ground (1 week): $2,000 → $2,000/week; FedEx (2 weeks): $4,500 → $2,250/week
• Staff training: $1,200 for 1 week → $1,200/week

2. Prioritizing activities with the lowest crash cost per week; in this case, criteria development offers the lowest cost at $1,500 per week, followed by staff training at $1,200, then UPS shipping at $2,000.
3. To keep costs minimal, crashing should be concentrated on activities with the lowest cost per week until the required duration is achieved. Given the target of approximately 10 weeks, applying the most cost-effective crashing options first (criteria development and staff training) minimizes expenses.
4. Choosing a combination of activities to reach the desired project duration means only crashing activities necessary to bridge the remaining time gap, avoiding unnecessary costs.

In sum, focusing on activities with the lowest crash costs, such as criteria development and staff training, while cautiously selecting shipping options, can effectively reduce total crashing costs without exceeding the critical project deadline.

Conclusion

This analysis demonstrates that the project's shortest feasible duration without crashing is approximately 13 weeks. Strategic crashing of critical activities, such as hardware shipping via FedEx and staff training, can bring the duration down to about 10 weeks at an estimated additional cost of $5,700. To minimize crashing costs while maintaining this schedule, prioritizing activities with the lowest crash cost per week is paramount. This approach ensures efficient resource allocation and cost control, vital in managing time-sensitive projects like onboard telemedicine system deployment in the cruise industry.

References

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